Scottish emergency budget review: Money cut from departments unlikely to ever be restored, says agency

Money cut from Scottish Government departments in this week’s emergency budget review is unlikely ever to be restored, according to an independent analysis.

Experts at the Scottish Parliament Information Centre (Spice) said the dramatic rise in inflation meant the financial pressure on everyday services would be long lasting.

Responding to plans to cut another £615 million this financial year, it said “many of the budgets where savings have been realised will never see that money again”.

Acting finance secretary John Swinney announced earlier this week that he would be forced to cut the size of the Scottish Government’s budget this year by almost £1.2 billion.

Deputy First Minister John Swinney. Picture: Jeff J Mitchell/Getty Images

In its analysis of the plans, Spice pointed out the main reason the cuts were needed was to make up for “more generous public sector pay deals” that had previously been anticipated.

Given rising inflation, it said ministers had been under “extreme pressure” to fund higher pay rises than would usually be the case and warned this would not be a “one off”.

It said high inflation would be the norm “for some time to come”, with public sector staff likely to use more generous deals agreed this year to inform future pay negotiations.

“Given the squeeze being brought to bear on spending from recent dramatic rises in inflation, it is likely that many of the budgets where savings have been realised will never see that money again,” its analysis concluded.